diff --git a/moonscript/transform/statement.lua b/moonscript/transform/statement.lua
index 6c8a60bf..47dd0de7 100644
--- a/moonscript/transform/statement.lua
+++ b/moonscript/transform/statement.lua
@@ -204,7 +204,13 @@ return Transformer({
           local _continue_0 = false
           repeat
             local name = names[_index_0]
-            if not (name[2]:match("^%u")) then
+            local str_name
+            if ntype(name) == "ref" then
+              str_name = name[2]
+            else
+              str_name = name
+            end
+            if not (str_name:match("^%u")) then
               _continue_0 = true
               break
             end
diff --git a/moonscript/transform/statement.moon b/moonscript/transform/statement.moon
index 2d3a3455..42c3ec79 100644
--- a/moonscript/transform/statement.moon
+++ b/moonscript/transform/statement.moon
@@ -122,7 +122,12 @@ Transformer {
 
     if node[2] == "^"
       names = for name in *names
-        continue unless name[2]\match "^%u"
+        str_name = if ntype(name) == "ref"
+          name[2]
+        else
+          name
+
+        continue unless str_name\match "^%u"
         name
 
     {"declare", names}
diff --git a/spec/inputs/local.moon b/spec/inputs/local.moon
index d4a616ca..fec78b18 100644
--- a/spec/inputs/local.moon
+++ b/spec/inputs/local.moon
@@ -75,6 +75,17 @@ do
   d = 2323
 
 
+do
+  local ^
+  lowercase = 5
+  Uppercase = 3
+
+  class One
+    Five = 6
+
+  class Two
+    class No
+
 do
   local *
   -- this generates a nil value in the body
diff --git a/spec/outputs/local.lua b/spec/outputs/local.lua
index db19697a..3ee8623e 100644
--- a/spec/outputs/local.lua
+++ b/spec/outputs/local.lua
@@ -70,6 +70,73 @@ do
   d = 200
   d = 2323
 end
+do
+  local Uppercase, One, Two
+  local lowercase = 5
+  Uppercase = 3
+  do
+    local _class_0
+    local Five
+    local _base_0 = { }
+    _base_0.__index = _base_0
+    _class_0 = setmetatable({
+      __init = function() end,
+      __base = _base_0,
+      __name = "One"
+    }, {
+      __index = _base_0,
+      __call = function(cls, ...)
+        local _self_0 = setmetatable({}, _base_0)
+        cls.__init(_self_0, ...)
+        return _self_0
+      end
+    })
+    _base_0.__class = _class_0
+    local self = _class_0
+    Five = 6
+    One = _class_0
+  end
+  do
+    local _class_0
+    local No
+    local _base_0 = { }
+    _base_0.__index = _base_0
+    _class_0 = setmetatable({
+      __init = function() end,
+      __base = _base_0,
+      __name = "Two"
+    }, {
+      __index = _base_0,
+      __call = function(cls, ...)
+        local _self_0 = setmetatable({}, _base_0)
+        cls.__init(_self_0, ...)
+        return _self_0
+      end
+    })
+    _base_0.__class = _class_0
+    local self = _class_0
+    do
+      local _class_1
+      local _base_1 = { }
+      _base_1.__index = _base_1
+      _class_1 = setmetatable({
+        __init = function() end,
+        __base = _base_1,
+        __name = "No"
+      }, {
+        __index = _base_1,
+        __call = function(cls, ...)
+          local _self_0 = setmetatable({}, _base_1)
+          cls.__init(_self_0, ...)
+          return _self_0
+        end
+      })
+      _base_1.__class = _class_1
+      No = _class_1
+    end
+    Two = _class_0
+  end
+end
 do
   local _list_0 = { }
   for _index_0 = 1, #_list_0 do